Wilma QHas a Utility Function U(x₁, X₂)=x²₁ +1

question 57

Multiple Choice

Wilma Q.has a utility function U(x₁, x₂) =x²₁ +1.5x₁x₂ + 30x₂.The prices are p₁ = $1 and p₂ = $1.For incomes between $20 and $60, the Engel curve for good 2 is

• A)upward sloping.
• B)downward sloping.
• C)vertical.
• D)upward sloping for incomes between $20 and $40 and downward sloping between $40 and $60.
• E)downward sloping for incomes between $20 and $40 and upward sloping between $40 and $60.

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